What’s the Difference Between my HOA and the HOA Management Company?

No matter where you live from Chandler, AZ to Phoenix and beyond, chances are, your home is within a Homeowners Association (HOA). For some people, the term HOA is a dreaded one because of the bad press HOA’s receive or personal experiences they’ve endured. Often though, it’s not the HOA itself that gets the blame, but rather the HOA management company.

The problem is that many Chandler, AZ area homeowners don’t know the difference between the role of their HOA Board of Directors versus the role of their HOA Management company. Many people assume that the management company and the Homeowner’s Association where they live are the same entity, when in fact they are not.

So, what exactly is the difference between an HOA Board and an HOA Management company?

Homeowner’s Association Board of Directors

Whether you’re in Chandler, AZ or someplace else, your HOA is made up of all the owners in your association, so you become a member of the HOA at the point of purchase. However, your HOA members elect a Board of Directors to run the community. Through the election process you give the authority to your Board of Directors to make all the decisions for the Association as outlined in the governing documents for your Community.

If your home happens to be in a new development that a builder still has control of, your HOA still exists. However, instead of elected members, the HOA Board is made up of representatives from the development company. Usually, the developer controls the HOA Board until the community is 75% closed, but that will depend on what is stipulated by the governing documents.

So, what are the powers and duties of the HOA Board of Directors?

These are dependent on what the bylaws and CC&Rs are for your community. The following is what you can expect your HOA Board of Directors to be doing on your behalf:

Approve the Annual Budget and Set the Assessment

Establish Rules for the Common Areas including Amenities

Select Vendors and Approve Contracts

Chair Committees and Approve Committee Charters

Approve Repairs and Expenditures

Enforce the Governing Documents

Pursue Delinquent Accounts through Collection Initiatives

Adopt Policies and Procedures

Board members are volunteers and in most instances through the governing documents, cannot be compensated for their service to your community. With that said, your volunteer Board of Directors most often need assistance and support to effectively run the daily affairs of the association. This is why most HOAs in Chandler, AZ are professionally managed.

Management Company

The Management Company works at the pleasure of the Board of Directors. The management company does not have the authority to set rules or make decisions on behalf of the Community. That means if you’re not happy with a HOA rule, your HOA property management company can’t change it even if they would like to. If you want to see a specific change, you need to address your HOA Board of Directors in a HOA Board meeting during the homeowner forum. The homeowner forum is the portion of the HOA meeting that is specifically set aside for homeowners to address their Board of Directors.

The HOA management performs services based on the management agreement. Most association’s employ management companies for full management services, while a small few employ them for accounting only services. The management company’s contract is based on the specific needs of your community’s Board of Directors. For example, Tru-Star Management Solutions here in Chandler, AZ provide the following services and more depending on the needs of your HOA:

Review Association Governing Documents

Notice and Attend Board and Annual Membership Meetings

Perform Regular Property and Compliance Inspections

Bill and Collect Assessments

Pay Invoices

Prepare Monthly Financial Statements

Coordinate Tax Returns

Assess Late Fees

Process Architectural Submittals

Maintain Association Records

Coordinate All Maintenance and Repairs and Obtain Competitive Bids

Coordinates Community Mailings

Provide Disclosure Documents to New Buyers

Provide 24-Hour Emergency Service

Your HOA Board of Directors are your elected representatives, they represent everyone in your community, including you. The HOA Management company helps the HOA Board take care of the property and enforce the rules, but the HOA management company doesn’t make the rules.

We hope this article helps clear up any confusion you might have regarding the role of your HOA and your HOA management company. We also hope this helps you understand who you need to contact for help with specific things related to your home and community and who can and can’t change the rules of your HOA.

Still have questions? We’d love to help. Contact us today with your questions and concerns.